In common with New Zealand, Maine found that a number could not complete work requirements because they could not get time off work from their off the books job.
Lindsay Mitchell found through Official Information Act requests that one in 10 beneficiaries are working full-time and one in 5 have no intention of looking for a job in the next year despite a requirement to actively look for work as a condition of receipt of their benefit.
David Henderson reminded me of the superb discussion by Milton Friedman in Capitalism and Freedom of the way in which the marketplace erodes prejudice.
The 1996 federal welfare reforms were supposed to condemn the poor to homelessness and no money to buy food. Deep poverty did not get worse as a result of those reforms. That alone refutes its critics.
Do-gooding curmudgeon Gareth Morgan takes great pride in his positions on public policy and health and safety such as a sugar tax are evidence-based.
He is quick to suggest that those that disagree with them are ignorant or steeped in moral turpitude, preferably both. His offsider has even suggested that I am too dogmatic to bother arguing with. Me!
It will be a slow train coming before Gareth Morgan takes an evidence-based health and safety approach to bikes and swimming. They are dangerous activities that should be banned if he is to be consistent. Morgan is a keen motorcyclist and recently asked for exclusive access to a seaside batch.
As I have previously argued, all the evidence suggests that riding a bike is dangerous. Both motorcycles and bicycles are way more dangerous than travelling by car.
Riding a motorbike and a bike should both be banned to protect motorcyclists and bicyclists from themselves. Like people who drink sugary drinks, they just do not understand the risks.
Swimming is an even more dangerous activity with multiple fatalities of a weekend common in summer. Again, people do not understand the risks of swimming both in the city and in rivers. They must be protected from themselves.
The argument that Gareth Morgan and his entourage will make in response to a demand for bans is the exact same one made against the food police.
I am sure Morgan will point out that people know that riding a bike or swimming is dangerous. Even those living in a cave also know that drinking sugary drinks and having a smoke is also dangerous. Indeed, the evidence is people overestimate the risks of these socially disapproved activities rather than underestimate them.
The argument that Morgan and his entourage would use against banning bikes, motorbikes and swimming is voluntary assumption of risk.
We live in a free society. If people want to lead a risky life, they are free to do so as long as they do not harm others.
Morgan is quick to point out the cost of the public health system of sugary drinks and other targets of the food police andthe safety Nazis.
Last time I looked, bicycle and motorbike accidents resulting trips to emergency wards and other expenses to the taxpayer.
You cannot have it both ways. Arguing that the fiscal cost of sugary drinks and other roads is a rationale for regulating their consumption. That argument applies just as strongly to the case for – updated banning motorbikes, bicycles and swimming.
Here is a quick doco by @vice on our trip around North Korea – North Korean Motorcycle Diaries http://t.co/R0XPBhK0py
Until Gareth Morgan’s do-gooding extends to calling for the banning of a passion of his life, which is motorcycling, his evidence-based crusades do not have much standing.
You cannot reject voluntary assumption of risk on a selective basis especially when you engage in one of those risky activities yourself.
UPDATE: Morgan has in the past called for the insurance levy on motorbikes to reflect risk better than is the case now.
…research we’ve done at theMotorcycle Safety Advisory Councilindicates that the risk of serious and expensive injury on a motorcycle is around 45 times higher per person-kilometre travelled as it is for occupants of other vehicles.
And we have a lot more bumps, scrapes and bruises per person-kilometre as well.
It gets worse. We also found that up to 31 per cent of our injuries arise from incidents involving no other vehicles. In other words we do this to ourselves because we can’t handle the road conditions.
Now of course we can blame the road as some of us are wont to do, but the reality is in most cases it’s pure incompetence or lack of self-management.
Any charging regime that gives riders an incentive to ride within their level of competence, to self-manage risk by wearing better protective clothing for example, or even lifting competency levels has to be a win-win doesn’t it?
This is not a call for a ban. Moreover, this is just a calm discussion of actuarial risk and the rampant cross-subsidies in the New Zealand universal, no fault accident compensation scheme.
Buried in at all these remarks by Morgan is people have the right to take risks and ride a bike if they want. No similar courtesy to people who like sugary drinks and those who support their right to drink and eat what they please. No similar courtesy to honest disagreement over whether a sugar tax is worth the trouble and strife.
What I must also add is the Morgan Foundation is a famous advocate of sugar taxes but a little-known advocate of actuarially fair insurance levies on motorbike. If the notoriety was the other way around, this debate would have more credibility. That is why I missed it in the first draft of this post.
I am still waiting for Gareth Morgan to call for bans on advertising of motorbikes and bicycles to children and on children’s television because they are impressionable. Why are motorbike and bicycle ads safe for children but cigarette and junk food ads not?
Milton Friedman argued that people agree on most social objectives, but they differ often on the predicted outcomes of different policies and institutions. This leads us to Robert and Zeckhauser’s taxonomy of disagreement
Positive disagreements can be over questions of: 1. Scope: what elements of the world one is trying to understand? 2. Model: what mechanisms explain the behaviour of the world? 3. Estimate: what estimates of the model’s parameters are thought to obtain in particular contexts?
Values disagreements can be over questions of: 1. Standing: who counts? 2. Criteria: what counts? 3. Weights: how much different individuals and criteria count?
Any positive analysis tends to include elements of scope, model, and estimation, though often these elements intertwine; they frequently feature in debates in an implicit or undifferentiated manner. Likewise, normative analysis will also include elements of standing, criteria, and weights, whether or not these distinctions are recognised.
Obesity by Occupation: In US police, firefighters, & security lead the pack. #dataviz
The origin of political disagreement is a broad church in a liberal democracy. Those you disagree with are not evil, they just disagree with you. As Karl Popper observed:
There are many difficulties impeding the rapid spread of reasonableness. One of the main difficulties is that it always takes two to make a discussion reasonable. Each of the parties must be ready to learn from the other.
Feel-good policies attacking sugar in drinks will do nothing but provoke opposition and delay the day when people confront the fact that they are going to the fatter than their parents and their grandparents because they are richer.
I lost 18kg after I was diagnosed with type II diabetes. Giving up sugary drinks and biscuits contributed maybe 2 kg to that weight reduction. Central to that weight production was I was well motivated.
A rise in the price of a sugary drink and the political fight over that turns friends into enemies and is a distraction from the larger cause.
Greg Mankiw was on point when he said that do we really think that meddling at this micro level of sugary drinks serves any purpose and can government be trusted to micromanage our lives with pushes rather than nudges:
To what extent should we use the power of the state to protect us from ourselves? If we go down that route, where do we stop?
Taxing soda may encourage better nutrition and benefit our future selves. But so could taxing candy, ice cream and fried foods. Subsidizing broccoli, gym memberships and dental floss comes next. Taxing mindless television shows and subsidizing serious literature cannot be far behind.
Even as adults, we sometimes wish for parents to be looking over our shoulders and guiding us to the right decisions. The question is, do you trust the government enough to appoint it your guardian?
The 1826 Billionaires in the Forbes 2015 list are classified as rich through political connections if they made their money through past political positions, close relatives or friends in government, or questionable licenses, privatisations or resource extraction industries.
All privatizations were included in the politically-connected/resource-related category despite my data source acknowledging the possibility that the new owners may have transformed the company. Resource billionaires were all deemed to be lucky or cronies by my data source rather than diligent as some most certainly were. This is something of a slur by my data source given the industriousness of some resource billionaires some of whom were even geologists.
Political cronyism is a path to billionaire wealth mainly in the developing countries. Less than 10% of Chinese billionaires made their money through political connections, which is surprising.
The purpose of occupational regulation is to protect buyers from quacks and lemons – to overcome asymmetric information about the quality of the provider of the service.
Adverse selection occurs when the seller knows more than the buyer about the true quality of the product or service on offer. This can make it difficult for the two people to do business together. Buyers cannot tell the good from the bad products on offer so many they do not buy to all and withdraw from the market.
Any entrepreneur who finds ways of providing credible assurances of the quality of this service or work stands to profit handsomely. Brand names and warranties are examples of market generated institutions that overcome these information gaps through screening and signalling.
Screening is the less informed party’s effort, usually the buyer, to learn the information that the more informed party has. Successful screens have the characteristic that it is unprofitable for bad types of sellers to mimic the behaviour of good types. Signalling is an informed party’s effort, usually the seller, to communicate information to the less informed party.
The main issue with quacks in the labour market is whether there is a large cost of less than average quality service, and is there a sub-market who will buy less than average quality products in the presence of competing sellers competing on the basis of quality assurance. This demand for assurance creates opportunities for entrepreneurs to profit by providing assurance.
Mostly disciplinary investigations and deregistrations under the auspices of occupational regulation are for gross misconduct and criminal convictions rather than the shading of quality.
Why Evolution is True is a blog written by Jerry Coyne, centered on evolution and biology but also dealing with diverse topics like politics, culture, and cats.
In Hume’s spirit, I will attempt to serve as an ambassador from my world of economics, and help in “finding topics of conversation fit for the entertainment of rational creatures.”
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